Prop. 206 minimum-wage hike would hit schools' bottom line

According to a new poll, most Arizona voters are in favor of Proposition 206, which would gradually raise the starting pay to $12 an hour by 2020.

A minimum-wage hike in Arizona would require schools to find the money to increase pay for some school employees like classroom aides, crossing guards, bus drivers, janitorial staff and cafeteria workers.(Photo: Michael Schennum/The Republic)

Arizona's public district and charter schools will have to come up with millions of dollars to cover salaries if voters on Nov. 8 approve Proposition 206 to raise the state's minimum wage.

Prop. 206 doesn't apply to state or federal government agencies, but it does apply to political subdivisions of the state, including counties, cities and school districts. While teachers already earn above the proposed increase to $10 starting in January and then incrementally to $12 by 2020, many schools employ classroom aides, crossing guards, bus drivers, janitorial staff and cafeteria workers who would earn more if it passes.

And while Arizona companies are warning that a minimum-wage hike could require them to raise the cost of goods and services, schools have no such ability. They are dependent on the state Legislature for funding, and the Legislature this year included no additional revenue dedicated to covering a possible minimum-wage increase.

Prop. 206: $12 minimum wage

"I hope school districts and charter schools realize this and contemplate the impact on their budgets next year," said Tucson Hispanic Chamber of Commerce President and CEO Lea Márquez-Peterson, whose organization opposes Prop. 206.

“When Prop. 206 passes, teachers will be able to spend more time teaching and less time caring for sick children or worrying about whether their students are being fed at home,” AEA President Joe Thomas said in a statement this summer.

The Charter School Association has not taken a position and declined to comment.

How much more will schools pay?

The financial impact varies by district.

The Peoria Unified School District, according to Communications Director Danielle Airey, currently has more than 250 staff members who earn less than $10 per hour. To move them up to that level would cost the district about $112,000, she said. To move more than 900 individuals up to $12 an hour by 2020 would cost the district about $1.6 million more a year.

It would cost the Chandler Unified School District about $220,000 more a year to bring all employees up to $10 an hour, according to Communications Director Terry Locke. It would cover 459 employees, most of whom are part-time student workers who work in the school cafeteria or for the after-school program. Raising salaries to $12 an hour would increase the district's budget by about $1.1 million.

Sahuarita Unified School District in southern Arizona would pay an additional $171,831 to raise the salaries of 33 employees to $10 per hour, according to district Community Outreach Director Amber Woods. It would cost the district $907,576 to move employees to $12 an hour.

At Agua Fria Union High School District in the West Valley, Finance Director Travis Zander said the only employees who currently earn less than $10 an hour are the part-time student food service workers. he said it would cost the district $22,500 to move those 127 students to $10 an hour. It would cost the district about $123,500 to move employees to $12 an hour, he said.

The Phoenix Union High School District at the start of this year eliminated the bottom two pay tiers, bringing its lowest-paid positions up to $10.17 and $10.97 an hour. About 420 individuals got raises to bring them to those levels, most of whom were part-time cafeteria workers.

Communications Director Craig Pletenik said it was partly done in anticipation of Prop. 206, but also for other reasons.

"Our entry-level positions have tremendously high turnover," he said, mentioning cafeteria workers who work four hours a day or a bus driver who works a split shift.

Pletenik said the change has been good for the district. He said they've already had two job fairs for cafeteria workers and been amazed at the improvement in the number and quality of candidates.

"We have a governing board initiative that wants all of our employees to be at what they call a living wage. It's a good thing for us," he said. "Every position when you are dealing with schools and kids is important."

Teacher support

The Arizona Chamber of Commerce and Industry opposes Prop. 206. Garrick Taylor, senior vice president of government relations and communications, said he doesn't understand why teachers are supporting the measure when it will likely mean less money for raises for them.

Then and Now: AZ Schools

"I am mystified as to why the teachers union is dumping money into a campaign that will ultimately make life harder for its own constituency," he said. "What is this pile of cash that school districts are going to be able to grab from in order to meet this new mandate? School districts are going to have to make some tough decisions."

Tomas Robles, chairman of the Yes on 206 campaign, said teachers support the ballot measure because it helps their students and parents.

"Teachers have to buy supplies for their kids and bring in extra food and snacks because their students come in hungry," Robles said. "There is a real understanding that our entire community needs support."

Richard Sims, the chief economist for the National Education Association, said in a statement that the state's general fund would benefit from Prop. 206, bringing in more money that the governor and Legislature could distribute to schools to offset the cost of higher wages.

“An increase in wages gives low wage workers more opportunity to spend,” Sims said in the statement. “Workers in Arizona tend to spend their money in the state, making them subject to sales taxes that government budget decision-makers could potentially reinvest in schools.”